In its first House Price Sentiment Index since the general election, it shows that while households in all regions perceived property prices rising in May, Londoners perceived the biggest rate of house price growth over the course of the month. In fact, expectations for future house price rises accelerated to six-month high in London.
However, it was households in the East of England which expected the strongest price rises over the next 12 months. The report also showed that some 6.4% of UK households plan to buy a property in the next year.
Grainne Gilmore, Head of UK Residential Research at Knight Frank, said:
“There is little evidence yet of an ‘election bounce’ in house price expectations, reflecting current market conditions. Activity is certainly picking up following the election of a majority government, and the certainty this has provided in the housing market. Demand is rising, but an increasing number of vendors are putting their homes on the market, and this is set to create more balance in terms of pricing.
“Londoners expectations for future price rises reached their highest level since November last year, perhaps reflecting the increased certainty in the outlook for property taxes in the Capital.”
